Bangladesh’s energy division is embroiled in a major controversy after three of its companies approved the purchase of luxury vehicles for Tk 150 million. The approvals, granted just before the Awami League government fell on August 5, blatantly ignored established financial rules and have triggered allegations of corruption and misuse of public funds. The incident has cast a shadow over the governance of state-owned enterprises.
Questionable Approvals Raise Red Flags
The boards of Bangladesh Gas Field Company (BGFCL), Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), and Titas Gas Transmission and Distribution Company each approved Tk 50 million for a luxury vehicle. However, sources reveal the actual cost of each vehicle was under Tk 45 million, raising immediate questions about the inflated budget.
An industry analyst questioned the decision, stating, “How could they approve such a high budget when the actual cost was clearly lower?”
The timing of these approvals, just months before a major political change, suggests a hurried attempt to push through the purchases. This has fueled suspicions that the procurement was influenced by political favoritism and was intended to benefit high-ranking officials before the government’s collapse.
Massive Overspending and a Halted Purchase
Following the approvals, BGFCL and BAPEX acted swiftly to procure their vehicles. In a shocking display of overspending, BGFCL purchased a Toyota Land Cruiser Prado (TXL) for nearly Tk 300 million. This amount is six times the already inflated budget of Tk 50 million allocated by its board.
Meanwhile, Titas Gas was unable to finalize its purchase before the government fell, leaving its approved funds unused. The stark contrast in outcomes between the companies has only added to the controversy.
Vehicle Procurement Breakdown
| Company | Approved Budget (Tk Million) | Actual Cost (Tk Million) | Status |
|---|---|---|---|
| BGFCL | 50 | 300 | Purchased |
| BAPEX | 50 | Not disclosed | Purchased |
| Titas Gas | 50 | Not purchased | Pending due to government fall |
Government Change Puts Officials in the Spotlight
The fall of the Awami League government on August 5 brought an abrupt halt to the procurement process for Titas Gas and put the officials involved under intense scrutiny. Md Nurul Alam, who was the secretary of the energy division and chairman of all three company boards, was central to directing these purchases.
Shortly after the government change, Alam was made an officer on special duty (OSD). While he defended the purchases by stating, “The vehicles were necessary for the operations,” his explanation has failed to convince critics. The situation is further complicated by conflicting accounts, as Petrobangla chairman Janendranath Sarker claimed he never received any proposals to buy cars for BGFCL and BAPEX.
Nasrul Hamid, a state minister implicated in the scandal, has reportedly been unaccounted for since the political shift, deepening the mystery surrounding the affair.
Blatant Disregard for Financial Rules
The entire procurement process violated a clear government directive. A finance ministry notification issued on August 1 capped the price of jeeps (not exceeding 2700 cc) for government officials at Tk 14.5 million, including all taxes. The approved budget of Tk 50 million per vehicle was more than three times this legal limit.
The approvals appear to have bypassed formal procedures, with insiders suggesting they were given verbally. This points to a severe breakdown in regulatory compliance and oversight within the energy division. Key issues include:
- Ignoring the official price cap set by the finance ministry.
- Approving budgets far exceeding the actual market cost of the vehicles.
- Circumventing formal channels for approval.
M Tamim, a former government adviser, criticized the board’s actions, stating, “There must be some personal interest behind the decision. Proper investigations are needed to uncover the truth.” The interim government is now under pressure to investigate these irregularities and hold those responsible accountable to restore public trust.
